UPDATE 2-Vaccine hopes, upbeat earnings power European shares

(For a live blog on European stocks, type LIVE/ in an Eikon
news window)
* Upbeat earnings from Daimler , Volvo lift auto stocks
* Surging Vuitton sales boost LVMH despite pandemic woes
* Johnson says prepare for no-deal Brexit, cancels trade
talks
* STOXX 600 snaps two-week winning streak as lockdown fears
weigh

(Updates to close)
By Sagarika Jaisinghani
Oct 16 (Reuters) - European shares bounced on Friday on
hopes that a vaccine for the novel coronavirus could be
available in the United States before the end of the year, with
a clutch of upbeat quarterly earnings also lifting sentiment
after a torrid week.
Pfizer Inc PFE.N said it could file for U.S. authorisation
of the COVID-19 vaccine it is developing with German partner
BioNTech 22UAy.F as early as November. The news powered global stock markets and helped lift the
pan-European STOXX 600 .STOXX by 1.3% in its best session in
nearly three weeks. MKTS/GLOB
The benchmark stock index nevertheless ended Friday with its
first weekly decline in three as a resurgence in coronavirus
cases across Europe stoked fears about more sweeping lockdowns.
London and Paris, Europe's two richest cities, are again living
under the shadow of state-imposed restrictions.
"This raises the very real fear that what is a stop-gap
measure actually turns out to be something slightly longer term,
which could see the collapse of hundreds of businesses," said
Michael Hewson, market analyst at CMC Markets UK.
The new restrictions could also stifle business activity,
derail a nascent economic rebound and further pressure European
stock markets, which have lagged a recovery in their U.S. peers.
While the S&P 500 .SPX has gained about 8% this year, the
European STOXX 600 is still down nearly 12%. Adding to investor uncertainty, British Prime Minister Boris
Johnson said on Friday it was time to prepare for a no-trade
deal Brexit unless the European Union fundamentally changed
course in trade talks. London's FTSE 100 .FTSE still rose 1.5% as analysts said
the majority of market participants expected a deal to be
reached.
In company news, Thyssenkrupp TKAG.DE surged 10.8% as
Liberty Steel, founded by commodities tycoon Sanjeev Gupta, said
it had made a non-binding offer for the company's steel unit.
LVMH LVMH.PA jumped 7.3% as recovering sales of Louis
Vuitton handbags helped it contain the fallout from the
coronavirus crisis in the third quarter. Shares of other luxury goods makers including Moncler
MONC.MI and Burberry BRBY.L rose more than 3%.
Telecoms .SXKP and real estate .SX86P were the only two
European sectors to end lower on the day.
German shares .GDAXI rose 1.6%, clawing back more than
half their losses from the previous session, with Daimler
DAIGn.DE surging 5.5% after the luxury carmaker posted
forecast-beating third-quarter results. A 3.3% rise for Volvo after stronger-than-expected results
also helped power the European autos index .SXAP to its best
session since Sept. 28.